U.S dollar still the safe haven for the investors... plus their equity market is working very very well... good stimulus in the market, good prospects for investors, and of course more opportunities for the companies to expand their business,,,
US stock market is really heavily overvalued now. Somebody could say – No it is not, because the companies’ earnings are greatly improved, but regarding as a whole the things doesn’t look so good and I think a collapse is heading later this year. The problem is that it is too difficult to exactly predict the time when it will happen.
U.S. stocks fell after the S & P500 index rose to its highest level since October 2007.Concerned about the situation in Europe and a drop in sales of homes in America were influenced by the investors oriented towards safer instruments. GDP did not meet forecasts in the last quarter of 2012. GDP grew 0.4%, while economists had expected growth of 0.5%. During European trading S & P500 fell 0.07%.
I don’t think the difference between the actual value and the expectations was so big, also there aren’t yet signs that US economy is slowing down, even totally opposite it is growing faster and faster with such a stimulus programs. This is a typical boom and burst cycle but nobody could tell exactly when it will burst. So for now it is safer to trade with the trend and not against it!
I don't think that U.S market is overvalued. The reason behind its bullish bias is that, european crisis are at one point that are helping the dollar to gain...but along with that, the orgnaizations in the U.S are growing with immense pace and due to which equity markets are booming... people are investing more... companies are spending more to diverisfy the business, create new opportunities, and expand the business.... no doubt, investors are savoring these bulls these days in the U.S market... its been a good year so far for them....
Record high values of the index of U.S. and crises in Europe have kept stock prices reached near level.USA still achieve good results. Introduced austerity measures that went into effect as of March have not yet begun to show a negative impact on the economy of America. Despite the fall in unemployment it is still significantly above the planned values which led to the fact that the Federal Reserve is maintaining the current monetary policy with a minimum interest and continued quantitative easing. U.S. stocks that have so far responded to the growth of any positive news regarding the U.S. economy during the last week halted growth. S & P500 continues further growth until 1575 and later to 1615 which means a call option.
U.S. stocks continued to rise on investor optimism that the results of the company's earnings in the first quarter affect recovery actions after this year's biggest drop. Alcoa shares in the company that opened the season during the regular publication of reports U.S. trade rose 1.8% before the disappointing data released after the close of the market. JPMorgan Chase & Co.., Wells Fargo & Co.. and Bed Bath & Beyond Inc.. 9 companies were among the S & P500 index, which will this week publish its reports. U.S. stock futures during European trading achieved modest growth as the market continues to maintain optimism about the new program of monetary easing in Japan..Sentiment market also supported the decline in inflation in China to 2.1% from 3.2% the February, which reduced concerns over possible further tightening of monetary policy, the Chinese government. During the morning, the S & P500 rose 0.19%.